US Chip Maker Micron Under Fire as China Launches Cybersecurity Probe Amid Escalating Tech Tensions
In a move that suggests growing unease with US tech exports, China has launched a cybersecurity probe into Micron Technology, one of America's largest memory chip makers. The probe comes on the heels of similar restrictions imposed by Japan and the Netherlands on semiconductor sales to China.
The Cyberspace Administration of China (CAC) announced the review, citing concerns over "ensuring the security of key information infrastructure supply chains, preventing cybersecurity risks caused by hidden product problems, and maintaining national security." Micron has warned in an earlier filing that such risks exist, including the possibility of Chinese government restrictions on its participation in the China market.
The probe is a response to US allies in Asia and Europe announcing new curbs on the sale of key technology to Beijing. The United States had banned Chinese companies from buying advanced chips and chipmaking equipment without a license, while Japan announced it would restrict exports of advanced chip manufacturing equipment to countries including China.
Shares in Micron plummeted 4.4% on Wall Street Friday following the news, marking the biggest drop in more than three months. The Idaho-based company derives over 10% of its revenue from China and has expressed concerns about the impact of such restrictions.
The move highlights Beijing's increasing pressure on foreign companies to bring them into line with its agenda, as it seeks to boost growth and job creation through wooing global CEOs. However, this effort is being met with resistance, particularly in the US, where technology exports are seen as a key driver of economic growth.
China has strongly criticized restrictions on tech exports, saying last month it "firmly opposes" such measures. The country's newly minted premier Li Qiang and top economic officials have been rolling out the welcome mat for global CEOs, promising them a favorable business environment and services.
The probe also comes as tensions between China and the US continue to escalate. In recent months, Beijing has taken steps to strengthen its own semiconductor industry, including launching new funding initiatives and offering incentives to domestic chipmakers.
As tensions in the tech sector continue to simmer, Micron's stock price remains under pressure, reflecting investor concerns about the potential impact of this probe on its operations and relationships with Chinese customers.
In a move that suggests growing unease with US tech exports, China has launched a cybersecurity probe into Micron Technology, one of America's largest memory chip makers. The probe comes on the heels of similar restrictions imposed by Japan and the Netherlands on semiconductor sales to China.
The Cyberspace Administration of China (CAC) announced the review, citing concerns over "ensuring the security of key information infrastructure supply chains, preventing cybersecurity risks caused by hidden product problems, and maintaining national security." Micron has warned in an earlier filing that such risks exist, including the possibility of Chinese government restrictions on its participation in the China market.
The probe is a response to US allies in Asia and Europe announcing new curbs on the sale of key technology to Beijing. The United States had banned Chinese companies from buying advanced chips and chipmaking equipment without a license, while Japan announced it would restrict exports of advanced chip manufacturing equipment to countries including China.
Shares in Micron plummeted 4.4% on Wall Street Friday following the news, marking the biggest drop in more than three months. The Idaho-based company derives over 10% of its revenue from China and has expressed concerns about the impact of such restrictions.
The move highlights Beijing's increasing pressure on foreign companies to bring them into line with its agenda, as it seeks to boost growth and job creation through wooing global CEOs. However, this effort is being met with resistance, particularly in the US, where technology exports are seen as a key driver of economic growth.
China has strongly criticized restrictions on tech exports, saying last month it "firmly opposes" such measures. The country's newly minted premier Li Qiang and top economic officials have been rolling out the welcome mat for global CEOs, promising them a favorable business environment and services.
The probe also comes as tensions between China and the US continue to escalate. In recent months, Beijing has taken steps to strengthen its own semiconductor industry, including launching new funding initiatives and offering incentives to domestic chipmakers.
As tensions in the tech sector continue to simmer, Micron's stock price remains under pressure, reflecting investor concerns about the potential impact of this probe on its operations and relationships with Chinese customers.
. I mean, Micron's got a big chunk of their revenue coming from China, so this probe is definitely going to make things complicated for them. It's like the old saying goes: "don't mess with the giants" - China's just trying to level the playing field and get some say in how they're treated by foreign companies. But at the same time, I can see why Micron would be worried... if Beijing starts cracking down on their operations, it could have big consequences for the company's bottom line 
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china's getting all up in arms over microns chips lol like who doesn't know where their tech is going to end up 
but for real though, this just shows how sensitive china is about its own growth and job creation they're basically saying "hey foreign companies gotta play by our rules or get left behind" which kinda sounds like a bad business strategy if u ask me 
it's like they're trying to force foreign companies like micron to play by their rules...and micron's got a big stake in china so i guess they're feeling the heat 
what do you think's gonna happen next?
this is getting outta hand 
they're basically holding their economy hostage 
it's so not fair 
and now Micron's stock is taking a hit 
. and now japan and netherlands are joining in on the fun too? 
. So when a huge US chip maker like Micron gets hit with a cybersecurity probe from China, it sends shockwaves through the entire tech industry 
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. And I get why they're doing it – they want to level the playing field and boost their own growth and job creation, right? But at the same time, this probe is also a clear sign that China is getting increasingly aggressive in its pursuit of global dominance 
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. One thing's for sure – this is just another example of how global tensions in the tech sector can have far-reaching consequences 
China's getting all bent outta shape 'cause America won't share their chips 
This whole thing is just a big game of "tech tit-for-tat" 